Reported by: Ijeoma G | Edited by: Jevaun Rhashan
The Abia State Government, led by Governor Alex Otti, has announced plans to formalise a major investment partnership with Presco Plc, a leading palm oil producer operating in Nigeria and Ghana, through the signing of a $200 million Memorandum of Understanding (MoU) to expand palm oil production and agro‑industrial activities in the state. The agreement, pending formal signing, is expected to mark a significant milestone in Abia’s agricultural development strategy and economic diversification efforts.
Governor Otti made the disclosure on Friday, March 13, 2026, while receiving a delegation from Presco Plc, led by its Chairman, Olakanmi Sarumi, at his office in Nvosi, Isiala Ngwa South Local Government Area. He said that the next stage would involve entering into an MoU that formalises the proposed partnership and paves the way for implementation of the project.
The initiative centres on the development of extensive oil palm plantations and related processing infrastructure in Abia State, beginning with what is expected to be a 14,000‑hectare plantation project, part of a broader 20,000‑hectare concession identified for agricultural investment. The governor and Presco representatives noted that the region’s fertile soil and favourable topography make it well suited to large‑scale palm cultivation and high crop yields.
Governor Otti framed the proposed investment as part of a broader vision to revive the agricultural heritage of the region, harking back to the era of the late Michael Okpara, former Premier of the old Eastern Region, whose farm settlement programmes once made the area one of Nigeria’s foremost palm oil producers. He stressed that the project could restore Abia’s agricultural prominence and create economic opportunities across rural and urban communities.
Presco’s chairman confirmed the company’s intention to commit $200 million to palm oil production and processing in Abia State. The investment is intended to position the state as a major palm oil hub in the South‑East, attracting downstream industrial activity and enhancing Nigeria’s domestic edible oil value chain. Sarumi said the project could generate over 5,000 direct and indirect jobs spanning plantation operations, milling, logistics and ancillary services, as well as encourage broader economic development in host communities such as Ozuitem, Abam and Ulonna.
Presco’s engagement with Abia State reflects a continuing relationship that began under the current administration’s Public‑Private Partnership (PPP) framework in early 2025, where initial discussions explored the company’s interest and the government’s readiness to attract credible agribusiness investments. Representatives from Afrinvest, who joined the delegation, commended the governor for insisting on rigorous evaluation and strategic due diligence before advancing the deal.
The planned MoU marks a major push to industrialise Abia’s agricultural sector at a time when many Nigerian states are seeking to reduce dependency on crude oil revenue and enhance value‑added economic activity. Governor Otti’s administration has made agricultural transformation a priority, incorporating efforts to boost productivity, employment and rural development through structured partnerships with private investors.
Presco Plc itself is a well‑established agro‑industrial company engaged in integrated oil palm operations — from plantation cultivation to processing and refining — with a presence across Nigeria and Ghana. The firm has been expanding its footprint and capacity in recent years, including through acquisitions and estate development, positioning it as one of West Africa’s leading edible oil producers.
Under the proposed partnership, the Abia State Government has committed to facilitating land acquisition, community engagement and security support to ensure the project’s success. Compensation arrangements for host communities are being discussed to ensure equitable benefit sharing and peaceful project implementation.
Stakeholders and analysts say that if implemented as envisaged, the investment could not only boost agricultural output and create jobs, but also enhance government revenue through taxes, reduce rural‑urban migration, stimulate small and medium enterprise growth, and strengthen the state’s long‑term economic base.
The MoU remains subject to formal signing and subsequent regulatory and administrative processes, but both parties have signalled a shared commitment to completing the agreement and initiating project activities. Officials say that preparatory work, including land identification and further stakeholder consultations, is already in progress as part of laying the groundwork for rollout.
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